Oral Answers to Questions

Debate between David Crausby and Chloe Smith

Tuesday 6th March 2012 Commons Chamber

[Mr David Crausby (Bolton North East) (Lab)]

13. What assessment he has made of the effect on families of the changes in eligibility rules for working tax credit to be introduced in April 2012.

[The Economic Secretary to the Treasury (Miss Chloe Smith)]

The Government are reforming tax credits to ensure that support is targeted on those most in need and costs are controlled. The change to the working hours requirement for couples with children makes the system fairer by reducing the disparity between lone parents and couples. Lone parents have to work 16 hours a week to be eligible for tax credits, so it is right that couples should have to work more hours between them.

--- Later in debate ---

[Miss Smith]

This Government’s main priority, as the hon. Lady knows very well, is to reduce the deficit left to us by her party, for which her party shows no responsibility whatever. She will also know that the cumulative average loss for households from our measures next year will in fact be £310.

[Mr Crausby]

Last week a young woman constituent employed locally by the Stroke Association complained to me that as a result of the association’s funding being cut, her hours were being reduced from 28 to 20, so she loses eight hours’ pay and tax credits as well. What advice can the Minister give my constituent other than to stop work and go on benefits?

[Miss Smith]

I would be sure that the hon. Gentlemen’s constituent in that case took a clear look around at the opportunities available throughout the economy. I refer him to my previous response, which is that vacancies were up in the three months to January 2012. There are jobs out there: hon. Members need only to hear, for example, this morning’s announcement from Nissan—somewhere near the hon. Gentleman’s constituency—to know that there is work available.